20 Nigerian Banks Meet CBN Recapitalisation Targets Amid Rate Cut To 26.5%

The Central Bank of Nigeria (CBN) has announced that 20 banks have successfully met its stringent recapitalisation requirements, a milestone hailed by Governor Olayemi Cardoso as a testament to the sector’s resilience during the 304th Monetary Policy Committee (MPC) meeting on Tuesday.

This development in the banking sector coincides with the CBN’s decision to lower its benchmark Monetary Policy Rate (MPR) to 26.5 percent from 27 percent—a 50 basis point cut marking the second reduction in five months.

The move signals cautious optimism that inflationary pressures are easing, allowing for cheaper credit to businesses and households after prolonged tightening.

Cardoso emphasized that the recapitalisation progress reinforces confidence in Nigeria’s financial stability amid reforms.

“The Committee’s decision was based on a balanced evaluation of risks to the outlook, which suggests that the ongoing disinflation path will continue,” he stated, noting improvements in exchange rate stability and decelerating inflation.While trimming rates, the MPC retained key safeguards: the Cash Reserve Ratio (CRR) stays at 45 percent for commercial banks and 16 percent for merchant banks, and the Standing Facility Corridor is now +50 and -450 basis points around the new MPR.

Analysts view this as a balancing act—easing financial strain without compromising macroeconomic discipline.

Policymakers stressed that sustained exchange rate stability and better food supply will be crucial for economic recovery, positioning the banking sector’s recapitalisation success as a strong foundation for growth and job creation.